The Role of Artificial Intelligence in Advancing Islamic Banking Operations

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Summarized Fatawaa

Generally speaking, I`m dutiful to my mother and opt for obeying her. However, she chose a certain girl to be my future wife, but I`m not pleased with her choice although that girl comes from a good family and enjoys good character. Should I obey my mother or choose another girl that lives up to my expectations?

Praise be to Allah the Lord of the Worlds.

One must obey their parents in whatever is in compliance with the teachings of Sharia and within one`s capacity. However, you aren`t to blame for not marrying that girl, but it is better that you tell your mother about that and it is preferable that you perform Istikharah prayer. And Allah The Almighty Knows Best.

What is the ruling on shaving one`s beard?

All Perefct Praise is due to Allah The Lord of The Worlds.

Growing a beard is mandatory and must be abided by except for a sound reason. And Allah Knows Best.

What should the man, whose wife wasn`t on good terms with his mother, do?

Both the mother and the wife have rights on the man in question; therefore, each should be given her rights justly, and he should resort to wisdom to please both of them and make reconciliation. And Allah Knows Best.

What is the ruling on working for a company that manufactures cigarettes?

All Perfect Praise is due to Allah, The Lord of The Worlds

Working for a company that manufactures cigarettes is forbidden because smoking itself is forbidden, so its production, selling and circulation are forbidden as a result since they aid in committing sin, and whoever aids in that is like the sinner himself. And Allah Knows Best.

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The Role of Artificial Intelligence in Advancing Islamic Banking Operations

Author : Dr. Safwan Odaybat

Date Added : 03-01-2024

The Role of Artificial Intelligence in Advancing Islamic Banking Operations

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

One of the emerging topics for which seminars and conferences are held, and attracts researchers to study and explore its potential developments across various fields and disciplines is the subject of Artificial Intelligence. This topic elicits concerns about its potentially destructive impacts on one hand, while on the other hand, it raises hopes and expectations for significant positive effects on improving the quality of life and serving humanity.

Before delving into explaining the impact of Artificial Intelligence on Islamic banking, it is essential to clarify the meaning of Artificial Intelligence and Islamic banking:

Artificial Intelligence can be defined as a set of technologies and software aimed at enabling computer systems to perform tasks that are typically considered important for human intelligence and facilitate operations associated with specific tasks.

Artificial Intelligence relies on data and algorithms to achieve specific objectives. Its applications encompass a diverse range of fields such as machine learning, natural language processing, robotics manufacturing, medical diagnosis, risk management, and more.

Islamic banking can be defined as a financial system based on the principles of Islamic law (Sharia). This system requires abstaining from practices such as usury (interest), uncertainty or speculation (Gharar), and injustice. It encourages financing and investment in ways that are in tune with Islamic values and principles.

The role of artificial intelligence in advancing the operations and services of Islamic banking is highlighted through the following:

1-Enhancing Efficiency and Risk Management:

Artificial intelligence can contribute to the development of Islamic banking by improving its operational efficiency through enhancing analysis processes and risk management. One possible means to achieve this is by utilizing machine learning to enhance credit assessment, identifying potential loans with greater accuracy and efficiency. Additionally, artificial intelligence will contribute to boosting employee efficiency by selecting suitable development, training, and educational methods tailored to their needs.

2-Development of Innovative Financial Products:

Artificial intelligence enables Islamic banking to develop innovative financial products that align with the principles of Islamic Sharia. For example, smart investment solutions can be developed based on financial analytics and Sharia-compliant guidelines.

3-Enhancement of Customer Experience:

Artificial intelligence can improve customer experiences in Islamic banking by providing personalized financial services tailored to the specific needs of customers. It can offer accurate investment guidance that aligns with customers' goals without conflicting with Islamic values.

4-Combatting Money Laundering and Terrorism Financing:

Artificial intelligence can contribute to enhancing financial integrity through intelligent operations that develop and improve the quality of monitoring financial transactions. Consequently, it can uncover all illicit and internationally prohibited activities, including money laundering and terrorism financing.

5-Facilitating Compliance with Islamic Sharia:

Artificial intelligence contributes to the development of Islamic banking by achieving better compliance with the rules of Sharia. This can be accomplished by providing guidance to financial professionals or by enhancing financial audit and monitoring processes.

In conclusion, the topic of the impact of artificial intelligence on Islamic banking in general requires precise scientific studies and research to highlight both the positive aspects and potential challenges. While artificial intelligence may contribute to enhancing the efficiency of financial services and their compliance with Sharia, ethical considerations and Islamic values must be taken into account in the application of this modern technological advancement.

Article References:

1-Book: "Artificial Intelligence and Its Impact on the Economy and Islamic Banking" by Dr. Rafiq Ali Suleiman.

2-Book: "Islamic Banking and Artificial Intelligence Technology: Challenges and Opportunities" by Dr. Mohammed Al Nuaimi.

3-Research Paper: "Artificial Intelligence Technology and Its Impact on Islamic Financial Services" by Researcher Ahmed Abdullah Al Salman.

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Summarized Fatawaa

What is the ruling of Sharia on unregistered marriage?

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

In order for a marriage contract to be considered valid, there has to be a Wali (Guardian) of the bride, two honorable witnesses and the contract has to be documented at an Islamic court. And Allah The Almighty Knows Best.

Who is required to fast?

Any adult, sane, and hardship enduring Muslim person is required to fast unless there were prohibiting conditions such as menstruation and confinement.

Is it permissible to offer the Eid sacrifice in a non-Muslim country?

Eid sacrifice is permissible anywhere, and Islamic Sharia hasn`t determined that it should be in an Islamic country, but poor Muslims should be given a share in order for it to be valid since it is an act of worship. A portion of that Eid sacrifice should be given at least to one poor Muslim, and if that wasn`t possible then the one offering it should consume it along with his family.

Is Hyena's Meat Permissible or Impermissible?

All perfect praise be to Allah, the Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad, sallallahu ‘alayhi wa sallam, is His slave and Messenger.

There is disagreement amongst the jurists as regards the ruling on eating hyena`s meat. Shafi`i and Hanabli jurists are of the view that eating hyena`s meat is permissible. The proof is the Hadith related by Al-Baihaqhi on the authority of Ibn Abi Ammar who said: "I asked Jabir bin Abdulla about hyenas, and he told me to eat them. I said: "Is it not game? He said: 'Yes' I said: 'Did you hear that from the Messenger of Allah?" He said: "Yes." And Allah The Almighty Knows Best.